Double Blow to Roaming: October 2023 War Closes Skies and Reduces Profits of Israeli Telecom Companies

SadaNews Economy - The war on October 7, 2023, and the conflict between Iran and Israel has led to a sharp decline in air traffic and tourism, resulting in a significant drop in revenues from international roaming services, which are a stable income source during travel seasons.

According to data from the second quarter of 2025, "Cellcom," an Israeli company, incurred losses estimated at around 10 million shekels from roaming revenues, while "Partner" faced losses of approximately 15 million shekels. In contrast, "Bezeq" achieved relatively better results, benefiting from increased demand during recovery periods, especially after launching eSIM technology in 2024, which allows for international connectivity at prices starting from just a few shekels.

Although eSIM technology presents an economical option for travelers, its usage remains limited, with only about 15% to 20% penetration among Israelis. Local and independent companies have entered the digital SIM market, but experts believe their sustainability depends on pricing policies.

If telecom companies reduce traditional roaming charges from 250 shekels to about 110 shekels, the attractiveness of eSIM could significantly decline, reshaping user priorities and impacting the future competition in this sector.